Kyocera is a Japanese telecommunications company that publishes IFRS-based financial statements. On its March 31, 2015, statement of cash flows (indirect method) in the operating section it reported a “provisions for doubtful accounts” of 197 million yen and an “increase in receivables” of 16,804 million yen.
a. Why were these two amounts reported in the operating section of the statement of cash flows?
b. How were these two amounts treated in the reconciliation of net income with net cash provided by operating activities?
c. During 2015 net cash from operating activities was 5,464 million yen higher than net income. Explain why.